BP sells all Alaskan oil and gas assets

BP has recently announced that it has agreed to sell its Alaskan business assets to Hilcorp Alaska, based in Anchorage, Alaska, for US$5.6 billion.

The transaction will include BP’s entire upstream and midstream
business in the state, including BP Exploration (Alaska) Inc, owner of all of
BP’s upstream Alaskan oil and gas interests, as well as BP Pipelines (Alaska)
Inc’s interest in the Prudhoe Bay field and the Trans Alaska Pipeline System.

Under the agreement, Hilcorp will pay BP a total
consideration of US$5.6 billion, comprising US$4 billion payable near-term and
the remaining through an earnout thereafter.

BP Group Chief Executive Bob Dudley said Alaska has been
instrumental in BP’s growth and success for more than half a century.

However, BP is steadily reshaping, which means other US and
worldwide opportunities more closely aligned with the company’s long-term
strategy are more competitive investment options.

Mr Dudley said BP’s exit from Alaska does not diminish BP’s
commitment to America, as BP have invested more than US$20 billion in the US over
the previous three years and will continue to investigate further investment
opportunities.

BP Alaska Regional President Janet Weiss said that BP are
confident the transaction is in the best interests of both the company and the
state, and that the business will be best positioned for the future with
Hilcorp.

The transaction is expected to be completed in 2020, subject
to state and federal regulatory approval.